Fiat-backed. The most popular stablecoins are backed 1:1 by fiat currency.
07 Nov 2023, 18:16
Fiat-backed
The most popular stablecoins are backed 1:1 by fiat currency. Because the underlying collateral isn’t another cryptocurrency, this type of stablecoin is considered an off-chain asset.
Fiat collateral remains in reserve with a central issuer or financial institution,…